One of the most asked questions of us here in the sales teams in Pt Augusta and Whyalla is and has always been – ‘How is the market going’. There are a number of responses we can offer, and all depend on the circumstances around the simple process of listing and selling properties.
In more recent times, our sales team seem to be answering in a consistent manner – ‘The market is showing strong signs for well-priced properties, and especially ones that are ready to be leased out’. What this means is our market has a strong demand for ‘lease ready’ properties. Homes that can be placed with our property management teams to be tenanted immediately.
The tenancy vacancy rate has had an impact on property sales in regional areas, and here in the north, we are experiencing higher than normal rental demand. A recent check of our offices shows our property management teams returning an 1.85% vacancy rate in Whyalla, and a stunning 1.75% vacancy rate in Pt Augusta.
As a result of these numbers the roundabout of real estate then looks like this:
When the vacancy rates get this low, savvy investors who monitor the vacancy rates will activate in areas performing well to buy property, which in turn become leased very quickly due to high rental demand. Properties are sourced by investors usually from the lowest price point upwards, and homes with low maintenance features rate the highest.
All of this has been happening in the last few months up our way, and investor/buyers have been using early superannuation access and refinance options to make their purchases. This puts pressure on first home buyers who really have to step up to compete in the low, more affordable price points. It’s not impossible for the first home buyers, as we have seen a lot of Mums & Dads are now actively assisting as guarantors in finance scenarios like these.
So, the short answer is that the market in and around Pt Augusta and Whyalla is performing very well indeed right now. Sale numbers are healthy, sales figures are solid, and vacancy rates are very low. Owners of homes that have been on the market for an extended period of time are now willing to have meaningful discussions on price, and astute buyers are making the right moves.
Finally, our records show that we currently have a third of all sales going to buyers who are either out of area or interstate. The COVID-19 lockdown has in an interesting twist, assisted our real estate market up here. Locked down investor/buyers are using the extra time they have to investigate and research our market, and they react very quickly once they have. If you think about it, the reasons are easy to see why (imagine being in Melbourne and discovering a 3br home in our area advertised for $149,000 on a 1000sqm block of land with a potential tenancy value of $290pw – that’s a rental return of just over 10%!), some buyers are considering 2 properties.
If you considering an investment or a new home, we currently have available for purchase a large selection of properties across a wide selection of price points. Something for everyone, at a price that suits every budget.
Check out our sale listings HERE!